Nigerian banks grew their combined shareholders’ funds to N27.77 trillion in 2025, up from N21.97 trillion in 2024, following the conclusion of the Central Bank of Nigeria’s (CBN) recapitalisation exercise in March.
An analysis of the audited 2025 full-year financial statements of 12 major banks revealed that shareholders’ funds increased by N5.8 trillion, representing a 26.4 percent rise from N21.9 trillion in 2024, driven by fresh equity injections and internal restructuring undertaken during the recapitalisation period.
Out of the 33 banks that met the Central Bank of Nigeria’s requirements, 12 banks were reviewed. Among them, Zenith Bank emerged as the most capitalised lender, with shareholders’ funds increasing to N4.9 trillion in 2025 from N4 trillion in 2024.
Followed by Ecobank Transnational Incorporated, which recorded one of the strongest gains, with shareholders’ funds increasing to N4.12 trillion from N2.78 trillion, reflecting strong earnings growth and capital reinforcement across its pan-African operations.
United Bank for Africa’s shareholders’ funds rose to N4.2 trillion from N3.4 trillion, while GTCO increased to N3.4 trillion from N2.7 trillion.
Access Holdings, which maintained one of the industry’s largest balance sheets, saw shareholders’ funds rise to N3.8 trillion from N3.5 trillion.
First HoldCo also expanded its capital base, with shareholders’ funds increasing from N2.7 trillion to N3.2 trillion.
Among mid-tier lenders, Fidelity Bank and Stanbic IBTC Holdings crossed the N1 trillion threshold as shareholders’ funds rose to N1.09 trillion and N1.12 trillion, respectively. while FCMB Group grew from N688 billion to N823 billion.
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Wema Bank more than doubled its capital base from N256 billion to N620 billion, reflecting one of the most aggressive capital expansion efforts among smaller lenders.
Sterling HoldCo’s shareholders’ funds rose from N305 billion to N424 billion.
Jaiz Bank was the only institution in the review to post a marginal decline, with shareholders’ funds easing from N71 billion to N68 billion.
A restructuring cycle
The recapitalisation exercise, initiated under the leadership of the CBN Governor, Olayemi Cardoso, was designed to prepare the banking sector for a more demanding economic environment and align it with Nigeria’s long-term ambition of becoming a $1 trillion economy.
Under the framework, international commercial banks were required to maintain N500 billion in minimum capital, national commercial banks N200 billion, and regional banks N50 billion.
The regulatory push triggered a wave of rights issues, public offers, private placements, mergers discussions, and profit retention strategies as banks moved to close capital gaps.
Banks were given until March 2026 to comply through fresh capital raising, mergers and acquisitions, or license downgrades.
After the two-year recapitalisation process, 33 banks raised a total of N4.65 trillion in new capital, strengthening the resilience of the financial system and enhancing its capacity to support the economy.
According to Fitch Ratings, in a recent report, Nigerian banks are expected to significantly increase lending in 2026 as stronger capital positions following the industry-wide recapitalisation exercise provide room for fresh credit expansion.
The global ratings agency said nominal loan growth in the banking sector is projected to accelerate to more than 20 percent in 2026 after slowing sharply to about 5 percent in 2025 due to tight monetary conditions, high interest rates, and the withdrawal of regulatory forbearance measures.
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Fitch said the fresh capital raised by banks to meet the Central Bank of Nigeria’s new paid-in capital requirements has strengthened balance sheets and positioned lenders for business growth.
“All Fitch-rated licensed Nigerian banks have met the new paid-in capital requirements effective from the end of the first quarter (Q1’26), as have the majority of non-rated banks,” Fitch said.
Similarly, at the 2026 IMF/World Bank Spring Meetings in the US, the fund acknowledged the significant milestone created by the bank recapitalisation in the Nigerian economy.
The IMF endorsed Nigeria’s banking sector recapitalisation drive, noting that stronger capital buffers were already proving effective in cushioning the financial system against external shocks.
Market reactions
The NGX banking stock has gained over 60.51 percent year-to-date, underscoring both the scale of investor inflows and the sharp repricing of key stocks, particularly in the financial sector.
Across the tier one banks, GTCO’s share price as of Tuesday is currently trading at N153 per share, gaining over 68 percent YTD, followed by Zenith Bank at N132 and FirstHoldCo at N74.55.
However, the Nigerian equities market continued its bullish run on Monday, with investors recording a combined gain of N3.162 trillion as market capitalisation rose above N160 trillion.